Deoleo Faces Uncertainty Amid Potential Sale Plans

Deoleo, the world’s largest olive-oil producer, is facing uncertainty as its two biggest investors review their shareholdings in the company. According to a stock-exchange filing from Deoleo’s CEO Cristóbal Valdés Guinea, the investors and funds are analyzing potential strategic alternatives regarding their investment.

Source: s.yimg.com

The Madrid-headquartered company said in the filing that these alternatives include the possible sale of all, or part of, the Deoleo Group’s assets and businesses. The filing also revealed that the two Luxembourg-registered ASO funds, ASO Lux 3 and ASO Lux 4, which are operated by UK-headquartered Alchemy Partners, hold 12.307% and 28.684% of the olive-oil business, respectively.

Ole Investments, described as the majority shareholder, owns 50.996% of Deoleo, according to the filing. This Dutch holding company is a part of CVC Capital Partners, a private-equity firm based in London and Luxembourg. When contacted for confirmation of the potential shareholding sale plans, CVC Capital declined to comment. Alchemy Partners had yet to respond at the time of writing.

El Economista, a Spanish publication, has listed a number of olive-oil competitors and food manufacturers that are interested in acquiring stakes or ownership in Deoleo. According to El Economista, olive-oil peer Dcoop in Spain is leading the charge to acquire CVC Capital’s stake for €470m ($549.4m), which would put that holding at 57%. This is slightly different from the 50.996% cited by Deoleo in its exchange filing.

CVC Capital took a 57% share in Deoleo in 2014, and it would not be the first time that the private-equity firm has sought to divest its interest in Deoleo. In 2023, El Economista reported that CVC Capital had hired financial advisory business Lazard to assist with the sale of its 57% share. However, a few months later, CVC Capital was reported to have withdrawn those sale plans as interest waned from potential buyers such as Dcoop, Borges, and Acesur.

Fast-forward to this week, and El Economista has reported that European companies Coricelli, New Princes Group, and Avril, along with Cobram Estate Olives in Australia, are also interested parties in Deoleo. Just Food has contacted those companies, along with Dcoop, for comment on the reports.

Deoleo indicated that it issued the exchange filing in response to news reports published in various media outlets. The company added that ‘to date, no definitive decision has been made, and Deoleo is unaware of whether the ongoing process will result in a specific transaction or, if so, the terms under which it might be carried out.’

The uncertainty surrounding Deoleo’s future is likely to have significant implications for the company’s stakeholders, including its employees, customers, and investors. As the situation unfolds, it will be interesting to see whether the potential sale plans will come to fruition and what the outcome will be for Deoleo and its stakeholders.

Deoleo Shareholders’ Holdings

The following are the details of the Deoleo shareholders’ holdings:

• ASO Lux 3: 12.307%
• ASO Lux 4: 28.684%
• Ole Investments: 50.996%

These figures are based on the information provided in Deoleo’s stock-exchange filing and may be subject to change as the situation develops.